El Pollo Loco Holdings Inc. (Nasdaq: LOCO) reported second quarter sales climbed 1.7% to $124.1 million, missing the average analyst estimate of $124.5 million.
The Costa Mesa-based restaurant chain reported system-wide comparable sales, which include independent franchises, rose 7.5% to $275 million for the quarter ended June 29.
Chief Executive Larry Roberts said the brand’s shredded beef birria promotion this summer contributed to sales growth in the second quarter.
“While system-wide comparable restaurant sales growth remains positive, similar to others in our industry, we are seeing some softening of consumer traffic and store-level margins continue to be challenged by the inflationary environment,” Roberts said in a statement. “Nevertheless, we continue to make meaningful and tangible progress towards our strategic initiatives.”
Shares remained unchanged in afterhours trading at $10.04 and a $368 million market cap. As of June, El Pollo Loco counts 481 total locations split between company-operated restaurants and franchised units.
